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Accounting for Liquidating a Partnership

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Accounting for Liquidating a Partnership;Sand, Mell, and Rand are partners who share incomes and losses in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decided to liquidate the partnership. Before the liquidation, the partnership balance sheet showed Cash $10,000, total %u201Cother assets,%u201D $106,000, total liabilities, $88,000, Sand, Capital, $1,200, Mell, Capital, $11,700, and Rand, Capital, $15,100. The %u201Cother assets%u201D were sold for $ 85,000.;Determine the following;The gain (or loss) realized on the sale of the assets.;The balances in the partners%u2019 capital accounts after the distribution of this gain or loss to the capital accounts.;Assume that if any capital deficits exist, they are not made up. How much cash will each of the partners receive in the final liquidation?

 

Paper#29193 | Written in 18-Jul-2015

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